Is The Federal Reserve Out of Gold?

Andrei Jikh • 10 days ago

Original source

What This Video Is About

The video discusses the US gold reserve, its management, and the misconception that the Federal Reserve directly owns the country's gold. It explains how the gold standard was abandoned in 1971 and the current state of the gold reserve.

Major Ideas Discussed

  • The US dollar is no longer backed by gold, following President Nixon's decision to close the gold window in 1971.
  • The Federal Reserve does not directly own any of the country's gold; instead, it holds a claim on the gold in the form of a gold certificate issued by the Treasury.
  • The total value of gold represented by these certificates is approximately $11 billion, which represents the nation's entire official gold reserve.
  • The gold reserve is not physically held by the Federal Reserve but is instead managed by the Treasury.

What to Watch Next

The video does not specify particular developments or themes to watch next, but understanding the management and value of the US gold reserve can provide insights into the nation's economic policies and the role of gold in the global financial system.